Category Archives: Congress

Who’s In Charge Here? Follow the Money

06 Saturday Feb 2010

Posted by in Congress, Democrats, Financial Crisis, lobbyists, Politics, Wall Street

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The Washington D.C. game of finger-pointing, blame-shifting, and buck-passing rolls on. Robert Reich in Thursday’s Salon:

“Senator Chris Dodd, the chairman of the Senate Banking Committee, scolded Wall Street representatives at a hearing Thursday for sending “an army of lobbyists whose only mission is to kill the common-sense financial reforms” needed by the public. “The fact is,” Dodd said, “I am frustrated, and so are the American people.” He charged that Wall Street’s intransigence was the reason for Congress’s failure to pass any bill to regulate the Street.

Dodd left out the most telling detail, of course. Wall Street is where the campaign money is. Dodd of all people knows that. He’s been on the receiving end of lots of it over the years.

…In other words, it isn’t Congress’s fault. It isn’t the Senate Banking Committee’s fault. It certainly isn’t Dodd’s fault. The reason more than a year has passed since the biggest bailout in the history of the world and nothing has been done to prevent a repeat performance…is what, exactly, Senator? Because the Street has sent an army of lobbyists to Capitol Hill?

Call me old-fashioned, but I thought Congress was in charge of passing legislation, not Wall Street.

A little over $6 million, that’s all. Which leads to the REAL reason for the lack of Congressional action:

“Congress isn’t doing a thing about Wall Street because it’s in the pocket of Wall Street. Dodd’s outburst at the Street is like the alcoholic who screams at a bartender “how dare you give me another drink when all I’ve done is pleaded with you for one!”

A Carefully Scripted Spontaneous Discussion

04 Thursday Feb 2010

Posted by in Congress, Democrats, Obama, Politics

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Question-and-answer session or dog and pony show? You decide (emphasis mine):

“Senate Democrats held back from asking President Barack Obama about healthcare reform during a carefully scripted question-and-answer session in front of television cameras…With the cameras rolling, a group of senators selected in advance by the Democratic leadership asked questions about such topics as partisan gridlock and GOP obstruction.

Democratic leaders planned their question time with Obama well in advance, discussing during a meeting earlier in the week who would get to ask questions.”

…There was a vigorous discussion about that afterward with some of his top advisers and others,” Sen. Evan Bayh (D-Ind.) said regarding the healthcare discussion.

“I think people were probably aware that there was no easy answer and this is being broadcast on live national television and didn’t want to put him on the spot,” Bayh said.

I’ll take dog and pony show for $1,000 Alex.

What Will Be Done About the Debt? Nothing

03 Wednesday Feb 2010

Posted by in Congress, economy, Obama, Politics

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The national debt is like the weather. Everybody talks about it, but nobody does anything about it. Nobody who CAN do something about it, that is. Reactions to President Obama’s proposed $3.83 trillion budget, which is projected to add $8.5 trillion to the debt over the next decade, prove that point, and can be summed up in a few words in this McClatchy article:

“Complicating the debt reduction picture is the desire by members of both parties to preserve what they see as important local programs, as well as to give themselves something to boast about in this election year.”

A few examples:

“There really isn’t anything in this budget which I can take home or talk about in favorable terms with respect to coal when I want to.” said Sen. Jay Rockefeller, D-W.Va.”

“Sen. Patty Murray, D-Wash., criticized Army Corps of Engineers funding. The Howard Hanson dam has been getting weaker and may not be able to control flooding in the Green River Valley, south of Seattle, she said.”

“Sen. Bernard Sanders, a Vermont independent..wanted the president’s proposed three-year freeze on non-defense discretionary spending to be extended to the Pentagon..[White House Budget Director Peter] Orszag said that wouldn’t be practical; Sen. Mark Warner, D-Va., agreed…”Because the nation is at war, we need to have more flexibility,” Warner said.”

One would think that a defense budget equal to the rest of the world’s military spending combined might have room for cuts somewhere. I guess one would be wrong.

OK, no defense cuts. What about entitlements?

“Orszag, who showed no emotion during his testimony, calmly said that Obama had a long-term plan to reduce the deficits, notably an as-yet un-appointed bipartisan commission to recommend remedies…Any commission recommendations also would have to be approved by Congress, where expected recommendations to cut the future costs of popular programs such as Social Security and Medicare and to raise taxes would face stiff resistance…There’s also no assurance that Congress will agree to a commission that has clout.”

So let’s review. Everybody in D.C. wants to reduce the debt and cut spending, but:

They won’t cut Defense.
They won’t cut entitlements.
They can’t stop paying interest on the debt.
They won’t cut any discretionary spending because it’s all somebody’s pet project or program.
They won’t raise taxes.

That leaves…….NOTHING.

Democrats Schmoozing the “Fat Cats” They Despise (Allegedly)

03 Wednesday Feb 2010

Posted by in Congress, Democrats, lobbyists, special interests, Wall Street

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The hypocrisy never stops. Senator Robert Menendez (D-NJ) in a press release last Wednesday following President Obama’s State of the Union address:

“In the upcoming elections, voters will face a choice between Republicans who are standing with Wall Street fat cats, bankers and insurance companies – or Democrats who are working hard to clean up the mess we inherited by putting the people’s interests ahead of the special interests.”

From Politico yesterday:

“Twelve Democratic Senators spent last weekend in Miami Beach raising money from top lobbyists for oil, drug, and other corporate interests that they often decry, according to a guest list for the event obtained by POLITICO.

Across the table was a who’s who of 108 senior Washington lobbyists, including the top lobbying officials for many of the industries Democrats regularly attack: Represented were the American Bankers Association, the tobacco company Altria, the oil company Marathon, several drug manufacturers, the defense contractor Lockheed, and most of the large independent lobbying firms.”

The guest list for the Democratic Senatorial Campaign Committee’s “winter retreat” at the Ritz Carlton South Beach Resort doesn’t include the price tag for attendance, but the maximum contribution to the committee, typical for such events, is $30,000. There, to participate in “informal conversations” and other meetings Saturday, were senators including DSCC Chairman Robert Menendez; Michigan’s Carl Levin and Debbie Stabenow; Bob Casey of Pennsylvania; Claire McCaskill of Missouri; freshmen Kay Hagan of North Carolina and Mark Begich of Alaska; and even left-leaning Bernie Sanders of Vermont.

Nice job, Bob. I’ll sleep better at night  knowing you’re looking out for the “people’s interests” and sticking it to those “fat cats.”

The "Gang of Eight" on the Senate Banking Committee

02 Tuesday Feb 2010

Posted by in Congress, Democrats, economy, Obama, Republicans, Uncategorized, Wall Street

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Since the “Gang of Six” in the Senate Finance Committee worked out so well, and produced such outstanding results (sarc) in writing health care reform legislation, why not just repeat the process in the Senate Banking Committee as they tackle reforming the financial industry? More openness and transparency from our elected officials in Washington:

“For two months, four pairs of Senate Banking Committee members — each with one Democrat and one Republican — have been meeting behind closed doors to reach a bipartisan compromise on regulatory reform.”

Here are the 8 senators involved, along with the amounts each has taken from financial industry PACs:

Chris Dodd, (D-CT) $3,124,237
Richard Shelby (R-AL) $2,171,369
Mark Warner (D-VA) $330,800
Bob Corker (R-TN) $426,750
Jack Reed (D-RI) $1,554,449
Judd Gregg (R-NH) $709,941
Chuck Schumer (D-NY) $1,629,295
Micheal Crapo (R-ID) $1,237,955

That’s a grand total of $11,184,796. And these are the people who are going to reform the financial system? That’ll be the day. But as good as things are for this new “Gang of Eight.” they’re about to get better:

“…the president’s new proposals have already provoked a sharp increase in the volume and energy of the lobbying on regulatory reform, with more chief executives stepping over their government relations staff to request personal meetings with lawmakers. The big banks, the lobbyists say, have become increasingly alarmed that the legislative process may move in unexpected directions outside their control.”

Well, we certainly have to put a stop to that. Can’t have anything going on that the banksters can’t “control,” can we? Speaking of banksters:

“...Jamie Dimon, chief executive of JPMorgan Chase had lunch with Mr. Obama last Tuesday, and then met separately on Friday with the Federal Reserve chairman Ben Bernanke and the Treasury secretary, Timothy Geithner.”

No doubt to discuss who they like in Sunday’s Super Bowl.

Lucy Holds the Football……Again

30 Saturday Jan 2010

Posted by in Congress, Democrats, health care, Republicans

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Some people never learn:

“Sen. Olympia Snowe (R-Maine) said Friday that she has been in conversation with Democrats and Finance Committee Chairman Max Baucus about a way forward on health care reform.

“I have talked with several of my Democratic colleagues, including the chairman of the Finance Committee, just sorting through these issues, and the process, and what will unfold,” Snowe told Andrea Mitchell on MSNBC Friday afternoon.

…But Snowe made it very clear she could not support any form of a bill that came through the reconciliation process—a legislative move she called “wrong and untenable.”

Instead, Snowe believes Congress could pass a scaled-back version of insurance reform based on measures that would aid small business, a policy stance she has held since the summer with she voted in favor of the bill that came through the Finance Committee.”

Einstein was right.

Whatever It Is, They’re Against It

30 Saturday Jan 2010

Posted by in Congress, Republicans

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In response to President Obama’s call for bi-partisanship in his Wednesday night State of the Union address, the Republican reply on Thursday was this:

“The Senate took a vote on extending the federal debt ceiling — without which the United States would go into default. All 40 Republicans voted no.

The Senate took a vote on requiring Congress not to pass legislation that it can’t pay for. All 40 Republicans voted no.

The Senate took a final vote on passing the overall plan. Thirty-nine Republicans voted no. The 40th, Sen.Mike Enzi (R-Wyo) skipped the vote.”

Groucho, you’re on:

Geithner, Paulson, and Bernanke at the Oversight Committee Hearings

29 Friday Jan 2010

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Putting different pieces of testimony from yesterday’s hearings before the House Committee on Oversight and Government Reform, it’s easy to see how the New York Federal Reserve’s “backdoor bailout” of Goldman Sachs and other large banks, via insurance giant AIG, became such a convoluted mess–nobody knew anything about it. Least of all the people who were allegedly in charge– Larry, Moe, and Curly former Treasury Secretary Hank Paulson, Fed chairman Ben Bernanke, and then head of the New York Fed and present Treasury Secretary Timothy Geithner.

“Henry Paulson, who was Treasury secretary at the time, told the House of Representatives Oversight and Governmental Affairs Committee that he had no role in the negotiations that settled the banks’ insurance-like contracts, called credit default swaps, with AIG for 100 cents on the dollar..”

Geithner: “I had no role in making decisions regarding what to disclose about the specific financial terms.. and payments to AIG’s counterparties.” To which Rep. Dan Burton replied:

“U.S. Federal Reserve Chairman Ben Bernanke said on Wednesday he was not directly involved in negotiations with the counterparties of insurance giant AIG, having delegated the duties to the New York Fed.”

“It stretches credulity for us to believe that you had no role in this and didn’t know anything about it when your attorneys and people that worked for you were sending emails all around the place and you were the head of the Fed and you didn’t know anything about it. It just doesn’t make any sense to me and I think a lot of my colleagues feel the same way.”

One thing is clear, though. Despite the Three Stooges being completely in the dark, Government Goldman Sachs made out like bandits in the entire sordid affair. I’m sure it’s strictly coincidental that:

“Paulson is an ex-Goldman chief executive, Geithner’s chief of staff previously worked for Goldman, and Dan Jester, a Treasury point man in the AIG bailout, is a Goldman alum.”

That surely had nothing to do with this:

“An unredacted document obtained by the Huffington Post list the damage in detail. Goldman Sachs alone, for instance, got $14 billion in government money for assets worth $6 billion at the time — a de facto $8 billion subsidy, courtesy of taxpayers.”

But yet Geithner testified yesterday that, “In the end, the prices paid for the securities were their fair market value.” Fair to who, Tim?

Geithner also testified that time was of the essence in bailing out AIG, that there was no time to negotiate terms which might be more favorable to the Fed. But yet:

“Neil Barofsky, the special inspector general tracking the use of taxpayer bailout funds…disclosed this week that he’s opened investigations into the Fed’s candor about the matter, recalled that Paulson, Bernanke and Geithner leaned weeks earlier on failing investment bank Bear Stearns to accept $2 a share to turn over its assets to banking goliath J.P. Morgan Chase.”

I guess there aren’t enough Bear Stearns friends in high places.